Canadian New Housing Price Index edged up 0.1% in December

The New Housing Price Index (NHPI) edged up 0.1% in December compared with the previous month, largely reflecting price increases in Ontario and Alberta. Prices have risen at the national level for 21 consecutive months.

Among the 21 census metropolitan areas (CMAs) surveyed, new housing prices were up in 10, down in 1 and unchanged in 10.

Kitchener-Cambridge-Waterloo (+0.8%) and St. Catharines-Niagara (+0.8%) recorded the largest price gains among the CMAs covered by the survey. Builders in Kitchener-Cambridge-Waterloo reported higher construction costs, a shortage of developed land and improving market conditions as reasons for the increase. In St. Catharines-Niagara, builders attributed the price increase to improving market conditions and moving to new phases of building with higher land development costs.

Prices rose 0.3% in Ottawa-Gatineau, Hamilton, Regina and Saskatoon. Builders in Ottawa-Gatineau cited market conditions and new phases of development as reasons for the gain. Builders in Hamilton reported improving market conditions and new phases of land development as reasons for higher prices.